MPs warn that welfare reforms poverty risk will push 50,000 disabled and chronically ill people into financial hardship by 2030. Despite Labour scaling back controversial benefit cuts, a new report reveals deep concerns. The Work and Pensions Committee says reduced support for new claimants could have devastating consequences. Last month, Labour abandoned plans to tighten Personal Independence Payment (PIP) eligibility. This reversal spared 800,000 people from losing benefits. However, the government kept cuts to Universal Credit’s incapacity element for new claimants.
Starting next year, those with limited work capacity will see monthly payments drop from £423 to £217. Committee chair Debbie Abrahams called this a major welfare reforms poverty risk. She urged ministers to delay cuts until proper impact assessments are done. The report also criticized plans to deny incapacity benefits to 18-22-year-olds. While the government wants to prevent youth inactivity, MPs argue this unfairly penalizes vulnerable young adults. They demand the policy be scrapped entirely.
Additionally, the committee welcomed a promised review of PIP assessments. They stressed that disabled people must help shape these changes. Yet, doubts remain about whether reforms will truly address systemic flaws. Labour’s welfare bill initially aimed to save £5 billion yearly. However, backlash forced significant concessions. Prime Minister Keir Starmer admitted mishandling the process. Critics say the remaining cuts still pose a welfare reforms poverty risk.
The government defends its approach, citing £3.8 billion for employment support. Officials claim reforms will lift 50,000 children from poverty. Opponents, however, argue that slashing benefits undermines this goal. MPs insist more analysis is needed before implementing cuts. They warn that without proper safeguards, the welfare reforms poverty risk could deepen inequality. As debates continue, thousands await clarity on their financial future.
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